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Cairo Co. can produce 3 products A, B & C; the following data is estimated to help in preparing the production plan for the coming

Cairo Co. can produce 3 products A, B & C; the following data is estimated to help in preparing the production plan for the coming period to maximize the profit:

A

B

C

Price

$ 30

$50

$30

Variable cost

$ 18

35

20

Demand (maximum sales)

2000 units

4000 units

5000 units

Machine hours per unit

4 hours

3 hours

5 hours

Machine hours per unit

3

5

2

The fixed cost for the Co. is $10000 regardless the production plan.

The total machine hours are 30,000 hours (maximum capacity).

Required:

1- Prepare the production plan.

2- Prepare the income statement (Fixed cost is allocated according the sales revenue).

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